Financial Data and Key Metrics Changes - Net income for Q3 2025 totaled $31 million, up 28% year-over-year from $24 million in Q3 2024 and up from a net loss of $28 million in Q2 2025 [5][6] - Net interest income reached $127 million for Q3 2025, an increase of 8% from the prior quarter and up 21% from Q3 2024 [10] - Net interest margin expanded by 20 basis points to 2.89% for Q3 2025, marking the best linked quarter expansion since 2012 [7][10] Business Line Data and Key Metrics Changes - Loan growth was observed across all major segments: C&I, commercial real estate, and residential mortgage, with gross loans totaling $14.6 billion, up 1.2% quarter-over-quarter [6][8] - Non-interest income showed growth in service fees on deposit accounts, international banking fees, foreign exchange, and wire transfer fees [11] Market Data and Key Metrics Changes - Deposits totaled $15.8 billion as of September 30, 2025, reflecting a 1% decrease from $15.9 billion as of June 30, primarily due to a reduction in brokered deposits [8] - Non-interest-bearing deposits increased by 1% quarter-over-quarter to $3.5 billion [8] Company Strategy and Development Direction - The company is focused on strengthening its deposit franchise and deepening primary banking relationships while optimizing deposit mix and pricing [8] - The outlook for 2025 includes expectations for high single-digit loan growth and approximately 10% growth in net interest income [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive profitable growth and create long-term value for stockholders, supported by strategic additions to banking teams [16] - The company anticipates a fourth quarter effective tax rate of approximately 14%, excluding notable items [16] Other Important Information - The Board declared a quarterly common stock dividend of $0.14 per share, payable on November 21, 2025 [8] - The company reported a 57% reduction in net charge-offs, reflecting improved asset quality [7][13] Q&A Session Summary Question: Spot rate on deposits and average margin for September - The spot rates for total deposits and interest-bearing deposits were 2.82% and 3.62%, respectively, with the average margin for September at 2.96% [19][21] Question: Update on Territorial acquisition and cost savings - The company is focusing on stabilizing and expanding operations post-acquisition, with incremental cost savings being realized [22] Question: Purchase accounting impact for the quarter - Loan accretion from the acquisition was $5 million for the quarter [25][26] Question: Maturing CDs in Q4 - The company has $2.3 billion of CDs maturing in Q4 at an average rate of 4.08% [32][34] Question: Loan growth outlook and impact of rates - The company has a strong loan pipeline going into Q4 and expects to maintain loan growth despite potential rate decreases [52] Question: Competitive environment for deposits - The company has reduced CD pricing following the Fed funds cut and is optimistic about managing deposit costs effectively [54][55]

Financial Data and Key Metrics Changes - Net income for Q3 2025 totaled $31 million, up 28% year over year from $24 million in Q3 2024, and improved from a net loss of $28 million in Q2 2025 [6][7] - Net interest income reached $127 million, an increase of 8% from the prior quarter and up 21% from Q3 2024 [10] - Net interest margin expanded by 20 basis points to 2.89% for Q3 2025, marking the best linked quarter expansion since 2012 [7][10] Business Line Data and Key Metrics Changes - Loan growth was observed across all major segments: commercial and industrial loans, commercial real estate loans, and residential mortgage loans [7][9] - Gross loans totaled $14.6 billion, up 1.2% quarter over quarter, equivalent to 5% annualized growth [8][9] - Non-interest income showed quarter-over-quarter growth in service fees, international banking fees, and wire transfer fees [11] Market Data and Key Metrics Changes - Deposits totaled $15.8 billion, reflecting a 1% decrease from $15.9 billion as of June 30, primarily due to a reduction in brokered deposits [8] - Non-interest-bearing deposits increased to $3.5 billion, up 1% quarter over quarter [8] Company Strategy and Development Direction - The company is focused on strengthening its deposit franchise and deepening primary banking relationships while optimizing deposit costs [8][9] - Continued investments in talent are aimed at driving sustainable growth and enhancing corporate and commercial banking capabilities [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving high single-digit loan growth in 2025 and expects net interest income growth of approximately 10% [16] - The company anticipates non-interest income growth of approximately 30% for 2025, excluding notable items from the second quarter [16] Other Important Information - The board declared a quarterly common stock dividend of $0.14 per share, payable on November 21, 2025 [8] - The allowance for credit losses totaled $152.5 million at September 30, 2025, with a coverage ratio of 1.05% of loans receivable [14] Q&A Session Summary Question: Spot rate on deposits and average margin for September - The spot rate for total deposits was 2.82% and for interest-bearing deposits was 3.62%, with the average margin for September at 2.96% [20] Question: Update on Territorial Bancorp acquisition - Operations are being stabilized and expanded, with incremental cost savings being realized, but no significant updates reported this quarter [21] Question: Purchase accounting impact this quarter - Loan accretion for the quarter was $5 million, up from $4 million in the previous quarter [24][25] Question: Maturing CDs in the fourth quarter - There are $2.3 billion of maturing CDs at an average rate of 4.08% [31] Question: Expense side and hiring process - New team members are being added in strategic segments, with a focus on strengthening existing capabilities and optimistic growth prospects [39][41] Question: Impact of government shutdown on SBA loan sales - The SBA has suspended acceptance of new loan applications, but existing loans with approval numbers will proceed as usual [44][45] Question: Challenges with non-accrual loans in commercial real estate - Non-performing loans have been relatively flat, with ongoing efforts to resolve problem credits [46] Question: Loan growth outlook and impact of potential rate decreases - A strong loan pipeline is expected to support growth, with improvements in commercial and industrial loans [51]

Core Insights - The company reported a significant improvement in asset quality, with a 57% reduction in net charge-offs and a 17% decrease in criticized loans in the commercial and industrial (C&I) segment [1][10] - The net income for the third quarter of 2025 was $32 million, reflecting a 29% increase from the previous year, driven by loan growth across major segments and an expansion in net interest margin [2][3] - The company declared a quarterly common stock dividend of $0.14 per share, payable on November 21, 2025 [1] Financial Performance - Net interest income for the third quarter totaled $127 million, an 8% increase from the prior quarter and a 21% increase year-over-year [6] - The net interest margin expanded by 20 basis points to 2.89%, the best linked quarter expansion since 2012 [2][6] - Noninterest income growth is expected to be approximately 30% for 2025, excluding notable items from the second quarter [12] Loan and Deposit Growth - Total deposits as of September 30, 2025, were $15.8 billion, a slight decrease of 1% from the previous quarter, primarily due to a reduction in broker deposits [5] - Gross loans, including those held for sale, totaled $14.6 billion, reflecting a 1.2% quarter-over-quarter increase [5] - The criticized loan ratio improved to 2.56% of total loans, down from 2.87% in the previous quarter [10] Strategic Initiatives - The company has been investing in talent to support growth, particularly in corporate and commercial banking, which is expected to enhance revenue growth [6][13] - The acquisition of Territorial Bancorp has strengthened the deposit position and is expected to yield cost savings as operations stabilize [7][12] - The company anticipates high single-digit loan growth for the full year 2025, supported by a strong loan pipeline [12][30] Expense Management - Noninterest expenses totaled $97 million in the third quarter, with a notable increase attributed to higher compensation-related costs due to talent investments [8][9] - The efficiency ratio, excluding notable items, improved to 67.5% compared to 69.1% in the previous year [9]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Performance - GAAP Net Income for 3Q25 was $30.8 million, or $0.24 per diluted common share[4] - Net Income excluding notable items for 3Q25 was $31.6 million, or $0.25 per diluted common share, up 29% QoQ[4] - Net interest income for 3Q25 was $127 million, up 8% QoQ[21] - Noninterest income totaled $15.4 million in 3Q25[33] Balance Sheet & Capital - Total deposits were $15.8 billion at 9/30/25, a decrease of 1% QoQ[4, 15] - Gross loans totaled $14.6 billion at 9/30/25, up 1.2% QoQ (5% annualized)[4, 18] - Total capital ratio was 13.83% and TCE ratio was 9.63% at 9/30/25[4] Asset Quality - Nonperforming assets (NPA) were $112 million, representing 0.61% of total assets at 9/30/25[4] - Classified loans at 9/30/25 were down 13% QoQ, representing 1.66% of total loans[4] - Net charge-offs (NCO) were $5 million in 3Q25, or 14bps of average loans, annualized, down 57% QoQ[46] Outlook - The company anticipates approximately 10% growth in net interest income for the full year 2025[47] - The company anticipates approximately 30% growth in noninterest income (excluding notable items) for the full year 2025[47]

Core Insights - Hope Bancorp reported revenue of $142.03 million for Q3 2025, a year-over-year increase of 21.8% and exceeding the Zacks Consensus Estimate of $139.15 million by 2.07% [1] - The company's EPS for the quarter was $0.25, compared to $0.21 a year ago, but fell short of the consensus estimate of $0.26, resulting in an EPS surprise of -3.85% [1] Financial Performance Metrics - Efficiency Ratio was reported at 68.2%, higher than the two-analyst average estimate of 66.4% [4] - Net Interest Margin stood at 2.9%, slightly above the two-analyst average estimate of 2.8% [4] - Net charge-offs to average loans were 0.1%, better than the estimated 0.2% by two analysts [4] - Net Interest Income (before provision) was $126.64 million, exceeding the average estimate of $123.93 million [4] - Total noninterest income reached $15.39 million, surpassing the average estimate of $15.22 million [4] - Net gains on sales of SBA loans were $2.77 million, below the two-analyst average estimate of $3.28 million [4] Stock Performance - Over the past month, shares of Hope Bancorp returned -0.3%, while the Zacks S&P 500 composite increased by 3.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Hope Bancorp reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.26 per share, but showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of -3.85% [1] - The company posted revenues of $142.03 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.07%, and up from $116.65 million year-over-year [2] - Hope Bancorp shares have declined approximately 13.1% year-to-date, contrasting with the S&P 500's gain of 16.9% [3] Earnings Outlook - The earnings outlook for Hope Bancorp is uncertain, with current consensus EPS estimates at $0.26 for the upcoming quarter and $0.89 for the current fiscal year, with revenues expected to be $139.9 million and $528.5 million respectively [7] - The trend of estimate revisions prior to the earnings release was unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Banks - West industry, to which Hope Bancorp belongs, is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q3 2025 was $30.8 million, a 28% increase year-over-year from $24.2 million in Q3 2024[2] - Excluding notable items, net income was $31.6 million, up 26% from $25.2 million year-over-year[3] - Noninterest income for Q3 2025 was $15.4 million, a significant recovery from a net loss of $23.0 million in Q2 2025[7] - The company reported net income of $30,843 million for the three months ended September 30, 2025, compared to a net loss of $27,881 million in the previous quarter[46] - Net income excluding notable items for the three months ended September 30, 2025, was $31,593, compared to $24,531 in the previous quarter and $25,171 year-over-year[50] Interest Income and Margin - Net interest income for Q3 2025 totaled $126.6 million, an 8% increase from $117.5 million in Q2 2025[5] - The net interest margin expanded by 20 basis points to 2.89% in Q3 2025, the widest since 2012[3] - Total interest income for the three months ended September 30, 2025, was $244,785, reflecting a 2% increase from $239,170 in the prior quarter[28] - Net interest income for the three months ended September 30, 2025, was $126,642, reflecting a net interest margin of 2.89%[32] - The company reported a net interest spread of 1.85% for the three months ended September 30, 2025[32] Assets and Loans - Total assets as of September 30, 2025, were $18.51 billion, slightly down from $18.55 billion at June 30, 2025[9] - Gross loans increased to $14.62 billion, up 1.2% from $14.45 billion at June 30, 2025[9] - Total assets were $18.51 billion as of September 30, 2025, showing a 7% increase from $17.35 billion a year earlier[26] - Gross loans, including loans held for sale, rose by 1% to $14.62 billion at September 30, 2025, compared to $14.45 billion at June 30, 2025[26] - The average balance of loans for the nine months ended September 30, 2025, was $14,136,511, generating interest income of $623,261 at a yield of 5.89%[34] Deposits - Total deposits decreased by 1% to $15.83 billion, reflecting a decrease in brokered deposits[9] - Deposits decreased by 1% to $15.83 billion at September 30, 2025, from $15.94 billion at June 30, 2025[26] - Total deposits as of September 30, 2025, were $15,911,601, with an interest expense of $115,425 and an average cost of 2.88%[34] - Total deposits decreased by 1% to $15,831,262 compared to the previous quarter, but increased by 7% from the same period last year[36] Credit Losses and Allowance - The allowance for credit losses was $152.5 million as of September 30, 2025, up from $149.5 million at June 30, 2025, with a coverage ratio of 1.05% of loans receivable[15] - The provision for credit losses for Q3 2025 was $8.7 million, a decrease from $15.0 million in Q2 2025, primarily due to lower net charge-offs[15] - The provision for credit losses decreased by 42% to $8,710 from $15,000 in the previous quarter[28] - The allowance for credit losses to loans receivable ratio was 1.05% as of September 30, 2025, with an allowance for credit losses to nonperforming loans ratio of 135.98%[40] Equity and Capital Ratios - Total stockholders' equity increased by 1% to $2.26 billion at September 30, 2025, compared to $2.22 billion at June 30, 2025[17] - The Common Equity Tier 1 Capital Ratio was 12.12% as of September 30, 2025, up from 12.06% at June 30, 2025, exceeding the minimum guideline of 6.50%[17] - The common equity tier 1 ratio stood at 12.12%, slightly up from 12.06% in the previous quarter but down from 13.07% a year ago[38] - The total capital ratio was 13.83%, slightly up from 13.76% in the previous quarter but down from 14.82% a year ago[38] Efficiency and Expenses - The efficiency ratio, excluding notable items, improved to 67.5% in Q3 2025 from 69.1% in Q2 2025[7] - Total noninterest expense decreased by 12% to $96,861 from $109,473 in the previous quarter[28] - The efficiency ratio (not annualized) improved to 68.20% for the three months ended September 30, 2025, from 115.75% in the previous quarter[30] - The efficiency ratio excluding notable items improved to 67.52% for the three months ended September 30, 2025, from 69.09% in the previous quarter[50] Nonperforming Assets - Total nonperforming assets as of September 30, 2025, were $112,157 million, maintaining a nonperforming assets to total assets ratio of 0.61%[40] - Nonaccrual loans totaled $110,008 million as of September 30, 2025, with commercial real estate (CRE) loans accounting for $54,016 million[40] - Total accruing delinquent loans 30-89 days past due increased to $20,903 million as of September 30, 2025, from $7,750 million in the previous quarter[42] Upcoming Events - The investor conference call to discuss Q3 2025 results is scheduled for October 28, 2025, at 9:30 a.m. Pacific Time[19]

Core Points - Hope Bancorp, Inc. declared a quarterly cash dividend of $0.14 per common share [1] - The dividend is scheduled to be payable on or about November 21, 2025, to stockholders of record as of the close of business on November 7, 2025 [1] - Hope Bancorp, Inc. is the holding company of Bank of Hope, which is the only regional Korean American bank in the United States with total assets of $18.51 billion [1]

Group 1 - Hope Bancorp, Inc. reported a loss for the second quarter of 2025, attributed to one-time merger-related expenses from the acquisition of Territorial Bancorp [1] - The company's earnings were negatively impacted in the second quarter [1]